This work aims to investigate the intrinsic and extrinsic factors that contribute to organizational commitment in the private education industry in Malaysia, to identify how employee retention programs can be effectively implemented in this industry, and to develop and empirically test a model of organizational commitment towards employee retention in the private education industry in Malaysia.
Based on the identification of intrinsic and extrinsic factors in the private education industry in Malaysia, this work used a questionnaire to assess the Malaysian private education industry in terms of its cognition and perspective with regard to intrinsic and extrinsic factors that lead to organizational commitment and its organizational commitment toward achieving an effective employee retention program. A questionnaire survey method was used to collect primary data from emails that were sent to participants. The research findings revealed that intrinsic and extrinsic factors and organization commitment were significantly and positively related to employee retention. Based on the research results, the author discusses managerial implications of the findings and opportunities for future research.
In today’s highly competitive business environment, organizations regardless of their sizes are facing employee retention challenges. Human resources are directly or indirectly related to all organizational processes and thus are important in allowing an organization to gain and sustain a competitive advantage. However, just to ensure employees stays on a payroll is meaningless, the company must also find out why employees stay.
Table of Contents
INTRODUCTION
LITERATURE REVIEW
THE NEED TO RETAIN CRITICAL EMPLOYEES
THEORETICAL BACKGROUND
ORGANIZATIONAL COMMITMENT
HERZBERG’S MOTIVATOR-HYGIENE THEORY
EQUITY THEORY
EXPECTANCY THEORY
SIDE-BET THEORY
INTRINSIC AND EXTRINSIC FACTORS ON ORGANIZATIONAL COMMITMENT
Employee Rewards: The Importance of Perceived Fairness
Promotion
Working Conditions
Employee Training & Development
Career Advancement Opportunities
Respect and Recognition
Organizational Empowerment
Job Security
Pay Satisfaction
Organization’s Reputation
EMPLOYEE RETENTION
PRIVATE EDUCATION INDUSTRY AND EMPLOYEE TURNOVER RATE IN MALAYSIA
THEORETICAL FRAMEWORK
THE MEASUREMENT MODEL
RESEARCH POPULATION AND INSTRUMENTATION
DATA ANALYSIS
RESULTS
SUMMARY AND CONCLUSIONS
RECOMMENDATIONS FOR FUTURE RESEARCH
Objectives and Research Themes
The primary objective of this study is to investigate the influence of intrinsic and extrinsic factors on organizational commitment and their subsequent effect on employee retention within the private education sector in Malaysia. The research seeks to develop and empirically test a theoretical model that links these motivational factors to commitment, ultimately identifying effective strategies for managing employee turnover in a highly competitive environment.
- The role of intrinsic motivators such as recognition and empowerment in fostering commitment.
- The impact of extrinsic factors including job security, compensation, and working conditions on retention.
- The mediating relationship between organizational commitment and employee retention intentions.
- The application of established theories like expectancy, equity, and side-bet theory within the private education context.
Excerpt from the Book
THE NEED TO RETAIN CRITICAL EMPLOYEES
Employee retention is the overall ability of an organization to retain its best employees and hence maintain a lower turnover. An organization is able to achieve this by adopting various employee retention programs. An employee retention program involves steps starting from identifying the major contributors in the organization, and designing schemes to involve them with the organization to ensure that they do not leave. Matthew, Andrew & Mohsen (1991) stated that if a firm wants to keep its employees, it should study the reasons for retention and continuation, and work to reinforce them while employees are in their jobs and not when they are leaving. Presently, employees have become opportunistic which means they are not confined to work with a single employer, due to a wide range of employment options available to them for switching their jobs, which is a challenge for the employers in the context of retention of the current workforce (Singh and Rokade 2014).
Hughes and Rog (2008) stated that while the direct costs associated with the loss of an investment in hiring and training new employees are a problem, the indirect costs associated with the loss of organizational memory and knowhow, and the tacit knowledge that employees take with them upon departure are the organizations’ most crucial concerns.
Summary of Chapters
INTRODUCTION: Outlines the challenges organizations face regarding employee retention and identifies the study's focus on the Malaysian private education industry using various motivational theories.
LITERATURE REVIEW: Discusses the necessity of retaining talent, explores theoretical backgrounds like Herzberg’s and Equity theory, and examines specific intrinsic and extrinsic factors affecting commitment.
THEORETICAL FRAMEWORK: Presents the conceptual model linking intrinsic and extrinsic variables to organizational commitment and employee retention.
THE MEASUREMENT MODEL: Describes the structural model tested via AMOS 19.0, including indicator variables and latent constructs.
RESEARCH POPULATION AND INSTRUMENTATION: Details the sampling method used for 520 institutions and the collection of 182 valid survey responses.
DATA ANALYSIS: Describes the usage of SPSS and Structural Equation Modeling (SEM) to test hypotheses and validate the measurement model.
RESULTS: Provides the survey demographics, correlation coefficients, and the outcomes of the hypothesis testing through the structural equation model.
SUMMARY AND CONCLUSIONS: Concludes that both intrinsic and extrinsic factors significantly and positively influence organizational commitment, which in turn leads to improved employee retention.
RECOMMENDATIONS FOR FUTURE RESEARCH: Suggests larger sample sizes, longitudinal designs, and exploring additional factors like work-life balance for future studies.
Keywords
Intrinsic factors, extrinsic factors, employee retention, private education, organization commitment, side-bet theory, equity theory, motivator-hygiene theory, expectancy theory, structural equation modeling, job satisfaction, organizational empowerment, career development, personnel turnover, management strategies.
Frequently Asked Questions
What is the core focus of this research?
The research examines the determinants of employee retention within the private education industry in Malaysia, specifically analyzing how intrinsic and extrinsic factors drive organizational commitment.
What are the primary thematic areas covered?
The study covers organizational behavior theories, factors influencing job commitment, the impact of training and development, the importance of perceived fairness, and the link between commitment and staff turnover.
What is the main research question or goal?
The goal is to develop and test a theoretical model to identify how intrinsic and extrinsic factors contribute to organizational commitment and effectively promote employee retention.
Which scientific methodology is utilized?
The researcher uses a quantitative survey approach, collecting data from 182 participants and employing Structural Equation Modeling (SEM) via IBM AMOS 19.0 for data analysis.
What does the main body of the work address?
It provides an extensive review of existing literature, builds a theoretical framework based on established motivation theories, and validates this framework through statistical testing of defined hypotheses.
Which keywords best characterize this work?
Key terms include employee retention, organizational commitment, intrinsic/extrinsic factors, expectancy theory, equity theory, and private education.
How do intrinsic and extrinsic factors differ in their impact according to the study?
Both factor types were found to have a significant and positive relationship with organizational commitment, with the study emphasizing that managers must provide a balance of both to maximize employee retention.
Why is the private education industry in Malaysia specifically studied?
The sector experiences high competition and high turnover rates (approximately 29.2% in 2011), necessitating a targeted strategy to improve institutional performance through better retention practices.
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- Dr. Wee Leong (Autor:in), 2019, Determinants of employee retention in the private education industry in Malaysia, München, GRIN Verlag, https://www.grin.com/document/511366
